Apple could also increase chip shipments to Europe from European factories
Bloomberg reports that Apple is planning to begin purchasing chips for its devices from an Arizona plant. This is a significant step in reducing the company’s dependence on Asian production.
CEO Tim Cook made the announcement at an internal meeting with German engineers and retailers. He also stated that Apple might increase the supply of chips made in Europe by expanding its European factories.
We’ve already decided to purchase the Arizona plant. The Arizona plant will begin operating in 2024. So we have approximately two years, perhaps a bit less. I’m certain that we will also purchase in Europe.
Bloomberg reports that the Arizona plant will be managed by Taiwan Semiconductor Manufacturing Co., Apple’s exclusive partner in chip manufacturing. This plant will open in 2024. TSMC has already begun to plan for a second US plant as part of a larger program to increase the country’s chip production.
Intel will also be opening Arizona factories as early as 2024. Although the chip manufacturer has been Apple’s primary supplier for many years, it is unlikely that they will regain the business. Apple has replaced Intel processors in Mac computers, and other products with its components.
TSMC stated that the plant will initially produce 20,000 chips per month. It will also use a 5nm manufacturing method. Apple already uses 4nm products, and plans to move to 3nm. Apple could use its Arizona manufacturing plant for less complex components, while TSMC shifts manufacturing towards finer process technology.